Exxon Valdez Oil Spill: Federal Jury Awards $287 Million in Damages

A federal jury's decision to award Alaskan fishermen $287 million in damages for the 1989 Prince William Sound oil spill has brought relief to Exxon Company USA, as the award represents only one-third of the $895 million sought by the plaintiffs. The jury's decision pleased the company, which had estimated its liability between $99.5 million and $113.5 million. The verdict, delivered last Thursday, marks a significant turning point in the ongoing litigation.

Key Takeaways:

• The jury awarded Alaskan fishermen $287 million in damages, which is just one-third of the $895 million sought by the plaintiffs.
• Ten thousand fishermen participated in the class-action suit, with over $130 million already paid by Exxon towards the total damages.
• The jury rejected fishermen's claims for lost harvest in 1990 and 1991, but allowed some claims in 1992 and 1993, which were years of low pink salmon runs in the sound.
• The jury disallowed effects of the spill in market prices past 1989, as well as the impact on limited-entry fishing permits, which lost value from $280,000 to $45,000.
• The reassessment of punitive damages is set to begin this week, with the plaintiffs asking for up to $15 billion.
• Exxon and Capt. Joe Hazelwood, skipper of the tanker Exxon Valdez, were earlier found guilty of recklessness in operation of the tanker, setting the stage for a potentially high punitive damages award.

Statistics:

• Damages awarded to Alaskan fishermen: $287 million
• Total amount sought by plaintiffs: $895 million
• Number of fishermen involved in the suit: 10,000
• Amount already paid by Exxon towards total damages: over $130 million
• Estimated liability of Exxon Company USA: between $99.5 million and $113.5 million
• Potential punitive damages: up to $15 billion
• Cleanup operations and civil and criminal penalties paid by Exxon: over $3 billion

Sources:

• "Exxon Valdez Ruling Relieves Concerns."
• "Oil Spill Damages Was Set at $287 Million."